Dear Constituent,
Thank you for contacting me about community energy.
As you say, communities are key to decarbonising the UK economy, and I am pleased the Government is supportive of community energy.
As you know, community energy projects can have benefits for the communities in which they are based, and the Government is keen to ensure that they deliver value for money for consumers. As you have referenced in your email, the Government has launched a new £10 million community energy fund, which expands on the success of the previous rural community energy fund, to enable both rural and urban communities across England to access grant funding to develop local renewable energy projects for investment, Communities at the heart of new fund to boost local growth and energy security - GOV.UK (www.gov.uk)
Ofgem has existing flexibility to award supply licences that are restricted to specified geographies and/or specified types of premises. Furthermore, following a consultation process, since February this year, Ofgem is welcoming applications from community-interest groups, co-operative societies and community-benefit societies to the industry voluntary redress scheme. This is enabling groups to apply for funds to deliver energy-related projects that support energy consumers in vulnerable situations, support decarbonisation and will benefit people in England, Scotland and Wales.
To support community energy projects, the Government has funded the Rural Community Energy Fund. This £10 million funding scheme was delivered through the Local Energy Hubs which support rural communities in England to develop renewable energy projects, which provide economic and social benefits to the community. Since its launch in 2019, the fund received 1,668 enquiries, 203 applications and awarded millions of pounds worth of grants to projects focusing on a variety of technologies, including solar, wind, low-carbon heating and electric vehicle charging.
The Government has also introduced other UK-wide growth funding schemes, such as the Community Renewal Fund and the Towns Fund, through which it is enabling local areas to tackle net zero goals in ways that best suit their needs. In addition, I know the Government encourages community energy groups to work closely with their local authority to support the development of community energy projects within these schemes and plans to reintroduce the Community Energy Contact Group to strengthen engagement with the sector.
The Energy White Paper, published in December 2020, also committed government to review the overall retail market regulatory framework and, through this review, the Government will assess what changes may be needed to allow for new supply propositions to come forward. I understand the Government will engage with community stakeholders as part of the review.
The Government’s approach to community energy is set out in the Net Zero Strategy which you can access here: Net Zero Strategy: Build Back Greener - GOV.UK (www.gov.uk). This includes running the Community Energy Contact Group to provide a dedicated forum to discuss the role that community energy can play in the delivery of net zero with the sector. The approach also includes support for community energy projects from Ofgem, which welcomes applications from the sector to the Industry Voluntary Redress Scheme.
Alongside this proposed fund, Ministers are committing to publishing an annual report to Parliament and to consulting on the barriers the sector faces when developing projects.
More generally in relation to renewable energy, I have been pleased to become a CPRE "Rooftop Solar Champion" and to meet with them recently to discuss their work on this important issue - https://www.richardfuller.co.uk/news/richard-becomes-cpre-rooftop-solar-champion
In order to further support their efforts, I have tabled a Written Parliamentary Question, as follows:
“To ask the Secretary of State for Environment, Food and Rural Affairs, (i) what assessment has been made of the capacity of rooftop solar energy to contribute to net zero targets and (ii) whether it is her Department's intention to mandate for a certain percentage of solar energy to be delivered through rooftop solar."
In addition, I have been campaigning to ensure alternative renewable liquid fuel types are available to homes which source their energy “off gas grid” as that is another way, in addition to all the measures set out above, we can support communities with their renewable energy needs and aims - More progress made on Richard's campaign for alternative renewable heating sources for "off gas grid" properties | Richard Fuller
It is encouraging to know that renewable energies fuelled 42 per cent of the UK’s electricity generation in 2022, up from seven per cent in 2010 and measures such as those above will play their part in continuing to increase the share of energy which comes from renewable sources.
Sincerely,
